February 16, 2011

Quinn budget spends more but cuts schools, health care

Gov. Pat Quinn unveils his state budget as he addresses the General Assembly at the State Capitol today. (Michael Tercha/Chicago Tribune)

Posted by Monique Garcia at noon; updated at 3:10 p.m.

Gov. Pat Quinn today stressed the need for spending restraint during his annual budget speech today, but largely glossed over the details, instead focusing on voter-friendly ways to boost the economy and create jobs.

The 27-minute speech hit many of the same themes Quinn used on the campaign trail – including investing in high speed rail, providing tax credits to innovative businesses and building a third airport in Peotone “as fast as humanly possible.”

While he said the first part of his $52.7 billion spending plan is “finding new ways to reduce unnecessary state spending,” he detailed just three areas to cut: Reducing the Medicaid reimbursement rate for health care providers, consolidating school districts and eliminating regional school superintendents.

He estimated the savings would reach $663 million, though Quinn’s budget officials said in a briefing before the speech that cuts would total roughly $1 billion.

Quinn did elicit boos for suggesting that lawmakers should no longer be able to grant tuition waivers to whomever they see fit. The system has long been abused and Quinn said that money should instead go to propping up scholarships for low-income students.

The governor also used the spotlight to admonish Republicans for refusing to support a plan to borrow $8.75 billion to pay off the state large backlog of unpaid bills, saying it was not enough for them to say “No” without offering alternatives.

“If you don’t agree with our debt restructuring plan, tell us which programs you would eliminate to pay $8.7 billion in overdue bills today,” he said.

Quinn spoke to lawmakers wearing a black and gold Kente cloth scarf, which was given to him by Rep. Karen Yarbrough, D-Chicago, to commemorate Black History Month. In an unusual departure, Quinn spoke from prepared marks. The governor usually speaks off the cuff, but was widely panned last year for an address that was criticized as unfocused, meandering and too long.

“By the governor’s standards, I thought it was good speech, a very good speech,” House Speaker Michael Madigan, D-Chicago, told WSIU’s "Illinois Lawmakers" show afterward. “We have our differences and we will work through those differences, and we’re looking forward to a very difficult budget-making process in Illinois.”

The speech comes just weeks after Quinn won an income-tax increase to help stabilize the state's troubled finances, and includes $1.7 billion more in spending than last year, a point that drew sharp criticism from Republicans.

Posted at noon

Just weeks after winning an income-tax increase to help stabilize the state's troubled finances, Gov. Pat Quinn today is unveiling a state budget that spends $1.7 billion more than last year, but still requires cuts to schools, public safety and health care coverage for the poor.

Quinn is giving the state's yearly budget speech to the General Assembly at noon. You can read Quinn's prepared remarks by clicking here.

"The task before us will not be easy," Quinn told lawmakers in his introduction to his budget book. "But I am confident we have the right plan to meet our challenges."

The administration said $52.7 billion spending plan does not include any new programs. Quinn chief of staff Jack Lavin explained that spending is higher than last year because new budgeting rules require the governor to include funding for things like pension payments and employee health costs, which have gone unpaid in years past.

"We had a broken system that for the last 20 years kicked the can down the road, maybe didnt count something in the budget," Lavin said. "You have to true-up the budget and put everything in."

The proposal will act as a starting point as Quinn and lawmakers hash out a budget plan during the spring legislative session.

Lavin said while overall spending is up, the budget still includes roughly $1 billion in cuts, though he also conceded that the state is looking to hire more than 800 new employees.

Much of the proposal hinges on borrowing $8.75 billion to pay down the state's massive backlog of bills, which Republicans said they will not support. Without it, Quinn budget chief David Vaught said the state would still face an estimated $10 billion deficit, and it would take nearly a decade to catch up on payments. If lawmakers can be convinced to sign on, the borrowing would reduce how long it takes providers to get paid from 6 months to 30 to 60 days.

Quinn also wants the power to borrow another $1.4 billion to pay for rehabbing state buildings and universities plagued by years of deferred maintenance, and he would again ask for powers that would allow him to borrow about $1 billion from other state funds to help plug budget holes.

While Quinn is not proposing new programs, he is cutting money from some and using it to prop up others.

His budget plans include putting more money into early childhood education and would add another $25 million for scholarships for low-income college students. But would cut $95 million that is given to school districts to pay for buses that pick up and drop off students.

Quinn's office also wants to work with lawmakers to consolidate some of the hundreds of school districts across the state to save costs, and would eliminate $14 million in subsidies for Regional Offices of Education.

Officials say the idea is to put more money into the classrooms and spend less on administration, and they argue transporting students to and from school should not be the state's responsibility but fall to individual schools.

When asked if that would lead to higher property taxes for cash-strapped schools waiting on payments from the state, Lavin said that underlines the need for borrowing to get rid of the backlog.

Human services will also feel the budget ax. Quinn would save $107 million by eliminating the Illinois Cares Rx program and $24 million by ending the Circuit Breaker program. Both help cover prescription drug costs. He would also limit eligibility for those who qualify for subsidized child care and cut reimbursement rates for Medicaid providers.

Elsewhere, Quinn wants more money to increase the number of correctional officers at state prisons, saying it would save overtime costs. But he would eliminate $10 million to pay for training for a new crop of state police officers and cut another $2 million to train conservation police with the Department of Natural Resources.

Quinn also wants to increase funding for job-training programs for the unemployed and put more money toward increasing foreign trade. He would reorganize the state's 10 overseas trades offices, closing some and opening others in emerging markets such as South Africa. Quinn wants to use more money to boost tourism, and would add some seasonal staffers at state parks to reduce overtime. But he would close Wildlife Prairie State Park near Peoria.

Comments

This is incredible. The state is awash in debt for the next 3 generations, Gov Jello wants to borrow more ('reasonable thing to do given low interest rates"), plays a shell game on tax hike and the budget STILL goes up? Debt to be repaid by what projected revenue stream that any real business person would vet? Debt to be repaid by whom? Oh yeah, forget ... there are those token "cuts" he likes to cite ... spurious claims as they are mainly reductions in rate of increase NOT an actual contraction. Have to "govern with a heart" he told us pre-election. Yep, and the citizens are getting it right through that organ. Quinn ... another "good progressive democrat", with the obvious results. Marvelous.

What is with high speed rail all the Democrats are pushing? Where we going? It's not like we have a corridor like NY/Boston. Are we going to speed down to Carbondale? And we don't need an airport in Peotone. We have more than enough airport capacity with Ohare, Midway, Rockford and Milwaukee-north, south, east and west. We just need to stop spending for a while and stop trying to call it investment.

Antoher congrats to the public sector, union employees who made it possbile to elect this putz. Income taxes up 66%, another ~$9 billion dollars of debt; oh, and by the way, let's SPEND MORE MONEY. I am sooooooo out of this state and I am taking my taxable income with me!!!

All 50 aldermen on the Chicago City Council had to file paperwork earlier this year detailing their outside income and gifts. The Tribune took that ethics paperwork and posted the information here for you to see. You can search by ward number or alderman's last name.

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